The Kwara State Government has ordered the closure of Harmony Holdings Limited and its struggling subsidiaries following years of financial losses and non-performance.
This decision was reached at the State Executive Council meeting held on Tuesday in Ilorin, presided over by Governor AbdulRahman AbdulRazaq. The council resolved to dissolve the company and revert all state-owned assets under its control to the Ministry of Finance Incorporated (MOFI) for more efficient management.
In a statement signed by the Commissioner for Communications, Mrs. Bolanle Olukoju, the government said the move was necessary to stop the financial hemorrhaging and restore value to state investments.
The Commissioner for Finance, Dr. Hauwa Nuru, who presented the review, revealed that despite multiple bailouts, loans, and grants extended to Harmony Holdings since its inception in 2012, the state had not received any returns on its investment.
“Huge public funds were pumped into the company and its subsidiaries like Harmony Transport Services, Harmony Insurance Brokers, and Harmony Investment and Property Development Company, yet none has yielded profit,” Nuru stated.
Only Harmony Securities Limited was reported to have made any profit, while the rest have remained liabilities to the state, with their financial positions falling below acceptable industry standards. According to the commissioner, a financial analysis showed that the companies’ quick ratios—a key measure of liquidity—were below 1:1, indicating they could not meet their short-term obligations.
The government emphasized that continuing to fund these entities was no longer sustainable. Dr. Nuru proposed transferring the management of their assets and liabilities to MOFI, a state-owned investment vehicle, to reduce recurring losses and ensure better oversight.
The council approved the recommendation, which will now be forwarded to the Kwara State House of Assembly for legislative ratification.
Officials said the move aligns with broader public sector reforms aimed at improving transparency, minimizing waste, and ensuring prudent management of government resources.
